There are Fewer Underwater Mortgages Due to Rising Home Prices

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Tobias Nergarden comments on the drop in the number of underwater mortgages that is a result of rising home prices.

Mr. Nergarden issued some observations about the rising home prices and concurrent drop of the number of underwater mortgages today, and his opinion is that this will help home sellers because it means that more people can start selling your house online and upgrade to a new one without losing money. More money and available buyers is useful for any real estate broker marketing as well.

The Los Angeles Times reports on data from Corelogic that indicates that the number of underwater homeowners has dropped from 23.7% to 22.3% from the first quarter of 2012 to the second quarter. This is a significant drop and takes nearly a million homeowners out of negative equity. Along with that, another 1.8 million homeowners were only slightly underwater with their home values 5% less than the debt owned on the property. This is taken as a sign that recovery is happening, but not as strongly as it would be if hiring was more robust. Even with all of this positive news, many states, such as Nevada and Florida as suffering from extremely high rates of underwater homeowners.

Corelogic is a research and data firm that works mainly in the areas of finance, properties and consumer information. Along with providing business information to client businesses, Corelogic does their own research, tracking trends in several fields, including real estate and mortgage trends over a period of time. Within Corelogic itself, there are three divisions, one in charge of business and information services, one in charge of data an analytics, and the last in charge of employer, legal, and marketing services.

Nevada, particularly in the Las Vegas area, has suffered greatly from the current economic crisis. Before the collapse of the housing market, Las Vegas was booming, particularly in the construction industry. When the market fell, many people discovered that they were underwater with their homes. The latest numbers show that 59% of all homeowners in Nevada are underwater, the largest rate of underwater homes in the country.

Florida has a high rate of underwater homeowners at 43%. This is due to a number of factors, including a high rate of homeowners insurance resulting from frequent hurricanes. This has contributed to a high rate of mortgage delinquency and a high number of homes on the market. Construction was also high during the boom period, and when the housing market collapsed, there were several hundred thousand new homes that had not been sold.

Real Estate Marketing Insider today commented on the higher home prices and fewer underwater homeowners in the United States.

About Real Estate Marketing Insider:
Real Estate Marketing Insider is a publication based in La Jolla, California. The primary goal of REMI is to provide real estate professionals everywhere with hot tips, strategies, and analysis.

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